1. Forms
2. CR
3. CR-10-48

What the Form Is

The CR 10 48 is an endorsement to a Commercial Crime insurance policy. Its primary function is to amend the definition of an "employee" specifically for insured entities that are school systems. This endorsement extends coverage by including students as "employees" when they are involved in handling property or funds related to student activities that are officially sanctioned by the school.

Classes of Business It Applies To

This endorsement is specifically designed for School Systems. This can include various educational institutions such as elementary schools, middle schools, high schools, and even colleges or universities that have student-organized activities involving the management of money or school property.

Real-world examples where this endorsement would apply:

• A student treasurer of the high school student government who is responsible for collecting and managing funds for an event like the senior prom.
• Students who are tasked with selling tickets for school-sponsored events such as a school play, a band concert, or a sporting event.
• Members of an officially recognized school club who are handling money raised from a fundraising activity, like a car wash or bake sale, provided the activity has received formal sanctioning from the school administration.

Special Considerations

• A critical condition for coverage under the CR 10 48 endorsement is that the student activities involving the handling of funds or property must be officially sanctioned by the school.
• Activities that are not officially sanctioned by the school administration, such as independent student protests, unsanctioned fundraisers, or parent-led fundraising drives that lack formal school approval, would typically not be covered by this endorsement for dishonest acts committed by students.
• It is highly advisable for the insured school system to establish and maintain clear, documented policies and procedures for the official sanctioning of all student activities. This clarity helps in ensuring there are no ambiguities regarding coverage.
• This endorsement typically modifies insuring agreements related to employee dishonesty or employee theft.

Key Information for Agents and Underwriters

• Risk Assessment: Underwriters should carefully evaluate the school's level of oversight and the internal controls implemented for sanctioned student activities that involve financial transactions or the handling of school property. This includes understanding the typical nature of these activities, the amounts of money or value of property involved, and the extent of adult supervision provided.
• Coverage Gaps: In the absence of this endorsement, acts of theft or dishonesty committed by students handling funds or property for school activities might not be covered under a standard Employee Theft or Employee Dishonesty insuring agreement. This is because students are generally not considered "employees" under the unendorsed policy definitions.
• Pricing: The premium for the CR 10 48 endorsement may be influenced by factors such as the total number of students in the school system, the nature and frequency of student-led financial activities, the typical amounts of money handled, and the limits of liability requested for the coverage.
• Underwriting Guidelines: It is important to inquire about the school's established policies concerning:
  • The formal process for sanctioning student activities.
  • Specific cash handling procedures and controls for student-run events.
  • Any segregation of duties among students involved in financial management.
  • Requirements for adult supervision or co-signing authority for financial transactions conducted by students.
• Agents should ensure that the insured school administration clearly understands that the coverage provided by this endorsement is strictly limited to officially sanctioned activities. Effective communication on this point is crucial to manage expectations and prevent misunderstandings at the time of a claim.